https://www.taxtmi.com/caselaws?id=426478 A going concern sale in liquidation under the Insolvency and Bankruptcy Code does not automatically transfer all pre-CIRP liabilities to the auction purchaser. The liquidation scheme is a complete code: the liquidator must admit claims, realise assets and distribute proceeds only through the statutory waterfall under section 53. Regulations 32 and 32A permit sale of the corporate debtor or its business as a going concern, but any liability transferred is confined to what is identified within that sale framework and cannot override the liquidation priority regime. Accordingly, pre-CIRP electricity dues of an admitted operational creditor are recoverable only through liquidation distribution, not by a second demand against the purchaser. en-us Fri, 12 Aug 2022 00:00:00 +0530 Thu, 18 Aug 2022 08:16:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=426478 A going concern sale in liquidation under the Insolvency and Bankruptcy Code does not automatically transfer all pre-CIRP liabilities to the auction purchaser. The liquidation scheme is a complete code: the liquidator must admit claims, realise assets and distribute proceeds only through the statutory waterfall under section 53. Regulations 32 and 32A permit sale of the corporate debtor or its business as a going concern, but any liability transferred is confined to what is identified within that sale framework and cannot override the liquidation priority regime. Accordingly, pre-CIRP electricity dues of an admitted operational creditor are recoverable only through liquidation distribution, not by a second demand against the purchaser. Case-Laws Insolvency and Bankruptcy Fri, 12 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=426478